The traditional leveraged buyout model can work for companies in mature industries with predictable cash flow to service the debt. But that means that cash cannot be used to re-invest in the company. The result is added pressure on the business, with managers forced to focus on the short-term requirements of servicing debt, rather than the long-term strategies for building the business.
We believe our approach is better suited for service companies with compelling growth prospects and opportunities to re-invest in margin-expanding opportunities. Opus Capital offers capital structures that align interests and incentives with business owners and management. Our approach targets real improvements in operations to create efficiencies and to generate growth.
Research and experience tell us that many mid-sized service companies have high potential to accelerate growth and profitability by applying technology. That's how we can help. We provide resources, relationships and guidance to help management identify, prioritize and implement operating improvements based on technology that can be transformative to a business—driving revenue, reducing costs and increasing profits. We stake our investment returns on the success of these efforts, generating gains by increasing enterprise value.
In the same way that information technology revolutionized manufacturing, we see a tremendous opportunity to help service companies increase productivity and value through broader use of technology.
Examples of technology-driven improvement include: